20 USC 1234d – Withholding
(a) Discretionary authority over further payments under applicable program
In accordance with section 1234c of this title, the Secretary may withhold from a recipient, in whole or in part, further payments (including payments for administrative costs) under an applicable program.
(b) Notice requirements
Terms Used In 20 USC 1234d
- applicable program: means any program for which the Secretary or the Department has administrative responsibility as provided by law or by delegation of authority pursuant to law. See 20 USC 1221
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Remand: When an appellate court sends a case back to a lower court for further proceedings.
- Secretary: means the Secretary of Education. See 20 USC 1221
- writing: includes printing and typewriting and reproductions of visual symbols by photographing, multigraphing, mimeographing, manifolding, or otherwise. See 1 USC 1
Before withholding payments, the Secretary shall notify the recipient, in writing, of—
(1) the intent to withhold payments;
(2) the factual and legal basis for the Secretary’s belief that the recipient has failed to comply substantially with a requirement of law; and
(3) an opportunity for a hearing to be held on a date at least 30 days after the notification has been sent to the recipient.
(c) Hearing
The hearing shall be held before the Office and shall be conducted in accordance with the rules prescribed pursuant to subsections (f) and (g) of section 1234 of this title.
(d) Suspension of payments, authorities, etc.
Pending the outcome of any hearing under this section, the Secretary may suspend payments to a recipient, suspend the authority of the recipient to obligate Federal funds, or both, after such recipient has been given reasonable notice and an opportunity to show cause why future payments or authority to obligate Federal funds should not be suspended.
(e) Findings of fact
Upon review of a decision of the Office by the Secretary, the findings of fact by the Office, if supported by substantial evidence, shall be conclusive. However, the Secretary, for good cause shown, may remand the case to the Office to take further evidence, and the Office may thereupon make new or modified findings of fact and may modify its previous action. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence.
(f) Final agency action
The decision of the Office in any hearing under this section shall become final agency action 60 days after the recipient receives written notice of the decision unless the Secretary either—
(1) modifies or sets aside the decision, in whole or in part, in which case the decision of the Secretary shall become final agency action when the recipient receives written notice of the Secretary’s action; or
(2) remands the decision of the Office.